A week after the U.S. presidential election, Bayer AG on Tuesday issued €4 billion ($4.3 billion) of mandatory convertible bonds as part of the financing for its proposed takeover of Monsanto Co., a sign of conviction that it can close the acquisition.

“Doing this transaction now demonstrates their [Bayer’s] confidence in getting the deal done”, said Stéphane Mardel, founding partner at United First Partners.

The issuance benefited from robust stock market gains over the past week. “We believe the timing for placing this instrument was driven by the strong equity performance of pharma and healthcare shares following the U.S. election, calming investor’s concerns,” said Frank Orthbandt, an analyst at Fitch Ratings in London.

Some investors had worried that a Democratic administration would have initiated price controls on drugs or other actions that could have derailed the purchase.

The bond issuance is the first component of $19 billion equity capital measure with which the German chemicals firm intends to finance its $66 billion acquisition of U.S. seed maker Monsanto.

The bond will automatically convert into equity on November 22, 2019, at between €90 and €108 per share.

Bayer had to offer 5.625% to institutional investors, at the higher end of the price range that it had set between 5.125% and 5.625%, according to a statement on the company’s website. This means that the company will have to pay interest of €225 million a year for the €4 billion, €20 million more than under the most optimistic scenario.

Nevertheless, the issuance represents a good transaction for Bayer, said Mr. Mardel.

“What they have done is actually cheaper than an equity issuance”, Mr. Mardel said. The combined coupon over the next three years is about 17%, less expensive than a traditional rights issue, Mr. Mardel said.

“The strong interest in the mandatory convertible notes confirms the capital market’s confidence in Bayer,“ said Bayer finance chief Johannes Dietsch in a investor note. “The transaction was multiple times oversubscribed, demonstrating the attractiveness of the notes to investors.”

The company did not immediately respond to an email seeking further comment.